Why is revenue recognition so difficult?
In a perfect world, revenue would arrive in predictable patterns at pre-ordained times. In the real world, revenue from customer sales, maintenance and support contracts, product or service plan renewals, royalties, etc., comes in on completely different schedules, not always when due. Accounting for multiple revenue streams in “simple spreadsheets” is anything but simple. You know the routine: Create multiple worksheets linked by formulas. Frustration sets in when you need to change an assumption in one worksheet, because you also need to change it in the others. The risk if you miss one is a broken link that destroys the entire model. The spreadsheet becomes so complex you settle for forecasting deferred revenue based on averages or “guestimates.” All of which has serious implications for the integrity of your data and reports. Or you can use Budget Maestro or Planning, which performs Revenue Recognition calculations for you, in essence giving you another staff accountant. Using a fr
